Jersey, Guernsey Eligible For EU Funds Passport

by Jason Gorringe, Lowtax.net, London
21 July, 2016

The European Union securities regulator, the European Securities and Markets Authority, said there are no significant obstacles to extending the Alternative Investment Fund Managers Directive (AIFMD) passport to Guernsey and Jersey.

ESMA's view is contained in advice to the European Parliament, the Council, and the Commission on the application of the AIFMD passport to non-EU Alternative Investment Fund Managers and Alternative Investment Funds.

In the case of Bermuda and the Cayman Islands, ESMA said it cannot give definitive advice with respect to the criteria on investor protection and effectiveness of enforcement since both countries are in the process of implementing new regulatory regimes and the assessment will need to take into account the final rules in place.

For the Isle of Man ESMA said that the absence of an AIFMD-like regime makes it difficult to assess whether the investor protection criterion is met.

ESMA's advice will now be considered by the European Commission, Parliament and Council.

Responding to ESMA's advice, Lyndon Trott, Vice-President of Guernsey's Policy and Resources Committee, said: "I am very pleased that ESMA has confirmed its positive assessment of Guernsey. This demonstrates confidence and trust in our regulatory framework and supervisory practices, and in our track record as a jurisdiction that meets the highest international standards."

Geoff Cook, CEO, Jersey Finance, said: "What ESMA's latest announcement shows is that satisfying ESMA's criteria is not straightforward for all jurisdictions and that Jersey's foresight to create an AIFMD equivalent regime is now putting it in a very strong place."

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